Linde (NYSE:LIN) and Chevron (NYSE:CVX) are both large-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.
Volatility & Risk
Linde has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Chevron has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.
Institutional & Insider Ownership
72.6% of Linde shares are held by institutional investors. Comparatively, 62.3% of Chevron shares are held by institutional investors. 0.7% of Linde shares are held by company insiders. Comparatively, 0.3% of Chevron shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Dividends
Linde pays an annual dividend of $4.24 per share and has a dividend yield of 1.5%. Chevron pays an annual dividend of $5.16 per share and has a dividend yield of 5.1%. Linde pays out 57.8% of its earnings in the form of a dividend. Chevron pays out 82.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Linde has raised its dividend for 29 consecutive years and Chevron has raised its dividend for 34 consecutive years. Chevron is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares Linde and Chevron's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Linde | $28.23 billion | 5.29 | $2.29 billion | $7.34 | 38.90 |
Chevron | $146.52 billion | 1.34 | $2.92 billion | $6.27 | 16.23 |
Chevron has higher revenue and earnings than Linde. Chevron is trading at a lower price-to-earnings ratio than Linde, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Linde and Chevron's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Linde | 8.29% | 8.56% | 4.86% |
Chevron | -10.86% | 1.75% | 1.06% |
Analyst Ratings
This is a summary of current ratings and target prices for Linde and Chevron, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Linde | 0 | 3 | 20 | 0 | 2.87 |
Chevron | 0 | 10 | 17 | 0 | 2.63 |
Linde currently has a consensus price target of $266.25, indicating a potential downside of 6.69%. Chevron has a consensus price target of $111.0741, indicating a potential upside of 9.10%. Given Chevron's higher probable upside, analysts clearly believe Chevron is more favorable than Linde.
Summary
Linde beats Chevron on 11 of the 17 factors compared between the two stocks.